Here’s the average Social Security benefit at ages 62, 65, and 70

Last year, nearly a quarter of newly added retired workers applied for Social Security at age 62, meaning they started benefits as soon as possible. And the average retired worker claimed Social Security at age 65.

Meanwhile, only one-tenth of newly retired workers delayed Social Security until age 70, meaning a very small portion of the population maxed out deferred retirement credits to earn the most benefit possible based on their records of gain.

Statistically speaking, the vast majority of Americans leave money on the table when they claim Social Security. A study published by the National Bureau of Economic Research suggests that more than 90 percent of workers would optimize their benefits by claiming at age 70.

Of course, different people have different priorities and financial circumstances, so there’s no single best age to start Social Security. But future retirees should understand how the age claim factors into the equation. Read on to see the average benefit for retired workers at ages 62, 65, and 70.

Image source: Getty Images.

Average Social Security benefit for retired workers at different ages

The Social Security Administration periodically publishes anonymized benefit data to promote transparency and improve public understanding. The chart below pulls data from a recently updated bi-annual report. It details the average monthly Social Security benefit paid to retired workers ages 62 to 70 in June 2024.

Source: Social Security Administration. Note: Payments have been rounded to the nearest dollar.

As shown above, the average Social Security payment generally increases with age, so the average 70-year-old retiree receives about $757 more per month than the average 62-year-old retiree.

Readers should focus on three ages — 62, 65 and 70 — because they cover the entire spectrum of possible outcomes. In other words, 62 is the earliest possible claim age, 70 is the latest sensible claim age, and 65 provides a data point somewhere in between.

Several factors affect Social Security payments, but the trend illustrated by the graph is primarily driven by differences in the age of claims. Otherwise, a retired worker will receive the lowest possible benefit at age 62 and the highest possible benefit at age 70.

Step-by-step instructions on how Social Security benefits are calculated

Social Security benefits are determined based on work history, lifetime earnings and claim age. These variables come together in the two-step process detailed below:

• Step 1: The first step is to determine the Primary Insurance Amount (PIA). A formula is applied to the inflation-adjusted income of the highest-paid 35 years of a retired worker’s career to determine their PIA. Importantly, workers with less than 35 years of work will have zeros factored into the equation. PIA is the benefit a worker will receive if they claim Social Security at full retirement age (FRA).
• Step 2: The second step is to adjust the PIA for early or delayed retirement. Workers who claim Social Security before FRA receive less than 100% of PIA. Workers who claim Social Security after FRA receive more than 100% of PIA. The only qualifications are that no one can claim pension benefits before the age of 62 and there is no advantage to claim later than 70.

The chart below shows how year of birth is related to FRA. It also details the benefit (as part of PIA) that a retiree would get by claiming Social Security at ages 62 and 70. In other words, the chart details the lowest and highest payout for all FRA groups.

Data source: Social Security Administration.

As the chart shows, workers can substantially increase their Social Security income simply by delaying benefits until age 70 instead of claiming at age 62.

Last year, the average retiree had a PIA of $2,042, meaning they would have received $2,042 per month in benefits if they had claimed Social Security at full retirement age. However, assuming a birth year of 1960 or later, the same worker would have received $1,429 per month (70% of PIA) if they had claimed Social Security at age 62. And he would have received $2,532 per month (124% of PIA). ) if they applied for social security at the age of 70.

The dollar amount will vary from person to person based on differences in PIA, but the percentage increase will remain constant. In other words, workers born in 1960 or later can increase their benefit by 77 percent by claiming Social Security at age 70 instead of 62.